WEBVTT 00:00:00.080 --> 00:00:03.140 All right, good afternoon. It's 3 p .m. On Thursday, 00:00:03.240 --> 00:00:07.879 January 22nd, 2026. We're here in case number 00:00:07.879 --> 00:00:16.559 26 -30103 in connection with a cash collateral 00:00:16.559 --> 00:00:20.699 motion set at which was filed at docket number 00:00:20.699 --> 00:00:23.620 34. So why don't we get appearances of counsel 00:00:23.620 --> 00:00:27.519 and then we can proceed. Good afternoon, Your 00:00:27.519 --> 00:00:30.000 Honor. Jared Martin, Bradley Arant for the S05 00:00:30.000 --> 00:00:34.240 digital debtor. Also with me on the go -to meeting 00:00:34.240 --> 00:00:36.939 and via telephone is our Chief Restructuring 00:00:36.939 --> 00:00:38.700 Officer with Accordion Partners, Andrew Heating. 00:00:40.299 --> 00:00:42.520 Good afternoon. Anyone else wish to make an appearance? 00:00:47.359 --> 00:00:49.299 All right. Mr. Martin, I'm going to activate 00:00:49.299 --> 00:00:54.079 the hand raising feature. You drew a huge crowd. 00:00:54.460 --> 00:01:06.000 So, hit five star. All right, Mr. Heady, hit 00:01:06.000 --> 00:01:32.659 five star as well. Mr. Scheinberg, if you want 00:01:32.659 --> 00:01:43.159 to be heard, hit five star. Okay, hold on. All 00:01:43.159 --> 00:02:08.840 right. All right, Mr. Scott, did you hit five 00:02:08.840 --> 00:02:11.680 -star? I did, Your Honor. I just wanted to make 00:02:11.680 --> 00:02:13.139 it clear. I don't know if I'll be speaking, but 00:02:13.139 --> 00:02:16.500 just in case I might. Brendan Scott of Quait 00:02:16.500 --> 00:02:18.379 Set Winters, Director Sutherland Stevens, on 00:02:18.379 --> 00:02:22.520 behalf of BH Multicom Corp, BH Multicolor Corp, 00:02:22.680 --> 00:02:25.500 Unique Designs, Inc., and Richland Great Pink. 00:02:26.120 --> 00:02:28.319 All right. Thank you. Thank you. All right. Go 00:02:28.319 --> 00:02:32.129 ahead, Mr. Martin. Thank you, Your Honor. We 00:02:32.129 --> 00:02:35.490 received informal comments from the global debtors 00:02:35.490 --> 00:02:38.550 and their lenders relating to the interim cash 00:02:38.550 --> 00:02:41.189 collateral order. We also worked collaboratively 00:02:41.189 --> 00:02:43.750 with Mr. Scott on reservation language he would 00:02:43.750 --> 00:02:47.650 like read into the record relating to the consignment 00:02:47.650 --> 00:02:51.310 claims. Before I get started, Your Honor, I'm 00:02:51.310 --> 00:02:54.610 going to admit exhibits 402 -1 and 402 -2, which 00:02:54.610 --> 00:02:58.310 is the first day declaration and the second approved 00:02:58.310 --> 00:03:01.599 budget. All right, does anyone object to the 00:03:01.599 --> 00:03:06.919 admission of Mr. Headey's declaration at 402 00:03:06.919 --> 00:03:10.319 -1 as his direct testimony in connection with 00:03:10.319 --> 00:03:14.620 this matter, subject to cross -examination? Okay, 00:03:14.759 --> 00:03:17.520 hearing no objection, I will admit that as his 00:03:17.520 --> 00:03:21.360 direct testimony. Does anyone object to the admission 00:03:21.360 --> 00:03:28.099 of exhibit 402 -2, which is the budget? which 00:03:28.099 --> 00:03:33.620 was also filed at docket number 399 -1. All right, 00:03:33.740 --> 00:03:37.280 hearing no objection, Exhibit 402 -2 will be 00:03:37.280 --> 00:03:42.520 admitted. Thank you, Your Honor. The second interim 00:03:42.520 --> 00:03:44.939 cash collateral order is substantially the same 00:03:44.939 --> 00:03:48.039 as the first interim order with similar escrow 00:03:48.039 --> 00:03:52.120 mechanics relating to expense reimbursements 00:03:52.120 --> 00:03:55.280 for the global debtors as we work through the 00:03:55.229 --> 00:03:59.610 appropriate amount of expense reimbursements 00:03:59.610 --> 00:04:02.509 that should be going from these estates to the 00:04:02.509 --> 00:04:06.189 global debtors estates. What we would propose 00:04:06.189 --> 00:04:08.229 in this order, Your Honor, is if we could have 00:04:08.229 --> 00:04:10.650 another interim hearing on or around February 00:04:10.650 --> 00:04:13.490 5th, subject to the court schedule. If there's 00:04:13.490 --> 00:04:18.709 no agreement with the global debtors on the reimbursement 00:04:18.709 --> 00:04:21.649 mechanics at that time, we'll come back on the 00:04:21.649 --> 00:04:24.379 5th. If there is an agreement, We would propose 00:04:24.379 --> 00:04:28.379 to upload an amended order that sets our final 00:04:28.379 --> 00:04:30.259 cash collateral hearing to be consistent with 00:04:30.259 --> 00:04:33.259 the other second day hearings that are currently 00:04:33.259 --> 00:04:38.639 scheduled for February 13. I believe the hearing 00:04:38.639 --> 00:04:41.540 date section of the proposed order at docket 00:04:41.540 --> 00:04:52.850 number 399 -1 is at paragraph 33. 33, yes. February 00:04:52.850 --> 00:04:57.550 5th is my panel day, my Chapter 13 panel day, 00:04:58.569 --> 00:05:02.870 so... Just before 6th. I think that was just 00:05:02.870 --> 00:05:16.389 a rough estimate. Would February 5th, 6th work 00:05:16.389 --> 00:05:21.060 for you or February 5th is... February 6th is 00:05:21.060 --> 00:05:22.899 fine unless any of the other parties object to 00:05:22.899 --> 00:05:25.259 that date. All right, anyone have a problem with 00:05:25.259 --> 00:05:32.399 February 6th? All right, why don't we do 9 a 00:05:32.399 --> 00:05:37.980 .m. on February 6th, so I'll put that in the 00:05:37.980 --> 00:05:41.279 proposed form of order. Thank you, Your Honor. 00:05:41.379 --> 00:05:44.259 We'll also prepare a notice of hearing. The statement 00:05:44.259 --> 00:05:46.519 role, you're making those changes, Your Honor, 00:05:46.560 --> 00:05:48.930 that Mr. Scott would like to read into the record 00:05:48.930 --> 00:05:52.470 is that as it relates to consignment counterparties, 00:05:52.550 --> 00:05:54.329 the party's rights as to the priority of their 00:05:54.329 --> 00:05:57.589 liens, including purchase money, securing interests 00:05:57.589 --> 00:06:00.050 and consigned goods as against the term lenders 00:06:00.050 --> 00:06:06.529 collateral is preserved. All right. Anyone else 00:06:06.529 --> 00:06:08.370 wish to be heard on the cash collateral order? 00:06:16.079 --> 00:06:19.160 I did have a chance to review the red line. Thank 00:06:19.160 --> 00:06:24.079 you for submitting that. And I didn't have any 00:06:24.079 --> 00:06:26.079 questions, although I did notice that it was 00:06:26.079 --> 00:06:41.920 a second interim. Earlier today, we filed an 00:06:41.920 --> 00:06:46.379 emergency motion to retain a liquidation consultant, 00:06:46.819 --> 00:06:49.120 which the court generously allowed us to set 00:06:49.120 --> 00:06:52.180 for hearing tomorrow morning at 830. That was 00:06:52.180 --> 00:06:54.759 in accordance with the milestones set forth in 00:06:54.759 --> 00:06:57.480 the first cash collateral order that this court 00:06:57.480 --> 00:07:02.660 signed. The debtors in consultation with accordion 00:07:02.660 --> 00:07:07.220 are also pursuing in parallel track bidding procedures. 00:07:07.529 --> 00:07:11.230 And we are receiving inbound inquiries from parties 00:07:11.230 --> 00:07:13.810 interested in making more of a bulk purchase 00:07:13.810 --> 00:07:18.829 of the debtor's assets. And we anticipate in 00:07:18.829 --> 00:07:21.870 the coming days filing a motion to establish 00:07:21.870 --> 00:07:24.870 bidding procedures as well to pursue parallel 00:07:24.870 --> 00:07:28.629 tracks of a liquidation process and a sale process. 00:07:33.819 --> 00:07:37.600 I'm going to go ahead and put the objection deadline 00:07:37.600 --> 00:07:43.060 on February 2nd, which is that Monday of the 00:07:43.060 --> 00:07:47.160 Friday. So that will give people, although from 00:07:47.160 --> 00:07:49.079 the filing, they will have had sufficient time, 00:07:49.100 --> 00:07:51.120 but just to give people a little bit more time. 00:08:21.000 --> 00:08:24.000 All right. Does anyone else, again, does anyone 00:08:24.000 --> 00:08:25.939 else wish to be heard with respect to the cash 00:08:25.939 --> 00:08:29.620 collateral in the second interim cash collateral 00:08:29.620 --> 00:08:35.720 order? All right. I had reviewed the form of 00:08:35.720 --> 00:08:43.000 motion and the order before you all came on. 00:08:43.220 --> 00:08:46.100 And I think it's a proper exercise of the debtor's 00:08:46.100 --> 00:08:48.419 business judgment. There is the escrow mechanism 00:08:48.419 --> 00:08:53.659 for the $175 ,000. And so we'll have, I guess, 00:08:54.500 --> 00:08:58.659 a second interim hearing or a second hearing 00:08:58.659 --> 00:09:04.500 on the, well, yeah, a third hearing on this now 00:09:04.500 --> 00:09:12.039 on February 6th at 9 a .m. And so I'll see you 00:09:12.039 --> 00:09:17.080 bright and early tomorrow. Yeah, and the reason 00:09:17.080 --> 00:09:18.940 I changed it is because I have a confirmation 00:09:18.940 --> 00:09:21.299 hearing starting at nine tomorrow. I think it's 00:09:21.299 --> 00:09:25.820 not going to go long, but I didn't. I mean, I 00:09:25.820 --> 00:09:28.480 wanted the hearing tomorrow. I want to give enough 00:09:28.480 --> 00:09:30.960 notice, but the hearing today there's been plenty 00:09:30.960 --> 00:09:33.440 of notice, so that's why I moved it. So thank 00:09:33.440 --> 00:09:36.759 you for accommodating that. I appreciate the 00:09:36.759 --> 00:09:39.580 accommodation on national borders as well. Alright, 00:09:39.779 --> 00:09:42.360 so we'll be will stand in recess till 830 tomorrow 00:09:42.360 --> 00:09:44.879 morning. Thank you. Thank you.